Street Calls of the Week
On Wednesday, Jefferies analyst Brent Thill reiterated an Underperform rating on Palantir Technologies Inc . (NYSE: NASDAQ:PLTR), citing concerns over insider selling patterns and valuation multiples. Thill highlighted that Palantir’s CEO has resumed selling shares under a prearranged 10b5-1 trading plan, offloading nearly 21% of his stake in the company over the past six months, equating to roughly $45 million worth of stock. According to InvestingPro data, the company currently commands a market capitalization of nearly $198 billion, with a P/E ratio of 427x.
The analyst compared the insider activity at Palantir with that of Salesforce (NYSE: NYSE:CRM), where the incoming Chief Financial Officer has been purchasing shares. This contrast in insider trading behavior suggests differing confidence levels in the respective companies’ futures. Despite these concerns, InvestingPro data shows Palantir maintains impressive gross profit margins of 80% and has achieved revenue growth of 29% in the last twelve months.
Palantir’s stock valuation has experienced a significant compression. After reaching a high of 61 times the calendar year 2026 revenue, the multiple has decreased by 36% to 39 times. Despite this reduction, Thill pointed out that Palantir’s multiple remains approximately twice as high as the next-highest software company. The stock’s current valuation metrics from InvestingPro indicate it remains significantly overvalued compared to its Fair Value, with an EV/EBITDA multiple of 564x. Investors seeking deeper insights can access 18 additional ProTips and comprehensive valuation metrics through InvestingPro’s detailed research reports.
Thill’s analysis of the market suggests that there could be further contraction of Palantir’s valuation multiple. This speculation is based on observed trends of other companies with high valuation multiples and how their stock prices have behaved after reaching peak levels.
Palantir, known for its specialized data analytics software used by government agencies and large corporations, has been under scrutiny by investors due to its high valuation and insider selling activities. The company’s financial performance and stock market valuation continue to be closely watched by analysts and investors alike.
In other recent news, Palantir Technologies Inc. has implemented its Anti Financial Crime technology at Societe Generale (OTC:SCGLY), enhancing the bank’s ability to combat money laundering and fraud through advanced analytics and machine learning. Additionally, Palantir announced the reinstatement of Jeffrey Buckley as Chief Accounting Officer, effective March 24, 2025, after a period of interim leadership by CFO David Glazer. Buckley’s return is part of a strategic move to strengthen the company’s financial leadership team.
Meanwhile, Morgan Stanley (NYSE:MS) has reaffirmed its Overweight rating on Palantir, maintaining a price target of $115.00, citing confidence in the company’s growth potential and initial guidance that aligns with market expectations. In contrast, fears over potential Pentagon budget cuts have sparked concerns about Palantir’s revenue, given its significant reliance on U.S. government contracts. Despite these concerns, Wedbush analysts have maintained an Outperform rating with a $120.00 price target, emphasizing Palantir’s leadership in the AI sector and its potential for substantial future growth.
These developments highlight Palantir’s strategic moves and the mixed sentiments among analysts regarding its future prospects.
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